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Guide On Taxi App Development: Everything You Should Know

Taxi App Development: Cost, Features, Advantages & Case Study
Posted by
Mar 5 2022

The app market is becoming more popular for on-demand services such as taxis. An increasing number of businesses are scrambling to make semi-variable investments to access it. As a result of the fast expansion of information and communication technology, the widespread usage of on-demand transportation services is only one of the many new things that have become feasible.

In recent years, as technology has progressed and people’s access to the internet has increased, the usage of smartphone applications for daily chores has surged. As a result of their widespread availability in app stores, Uber and similar taxi booking applications have made traveling significantly more convenient than it was previously possible.

At the moment, there is a diverse range of taxi booking applications accessible in app stores, and new and better ones are always being developed and released.

In this blog we will discuss on-demand mobile applications for drivers and passengers along with taxi app developer examples. We will also discuss the process of building a Taxi booking app, how to enable taxi app implementation and taxi booking app development services.

Statistics about the Taxi Industry

Between 2020 and 2027, the global taxi market is predicted to rise by 12.3%, from its present value of $69.18 billion to $120.89 billion, an increase of 12.3% throughout the period. The market for ride-sharing services is expected to contract in 2020 due to health and safety concerns.

According to the forecasts, it is predicted to reach USD 327.54 billion by 2026, representing an annual growth rate of 8.95% over the previous year (2021-2026). Furthermore, as the number of individuals who own smartphones grows, so does the need for mobile applications. As a result, now is the most valuable time for businesses to invest in taxi app development to enjoy the advantages of greater productivity and profitability.

Taxi App Developers Examples

Many individuals choose to book a taxi online and then sit back and relax on their couch while they wait for the cab to save time and money. Uber, Grab, and Careem are just a few of the amazing taxi applications accessible to anybody wishing to schedule transport from one location to another.

But which cab-hailing app is the most effective? It must be difficult to choose a single-click cab order from among a selection of applications. As a consequence, there is no need to be concerned. We have compiled a list of the finest features of Taxi booking app, excellent user ratings, and overall popularity.

  1. UberFounded in San Francisco’s Silicon Valley, this startup has revolutionized how on-demand taxi booking applications are defined worldwide. At the time of writing, Uber is accessible in 700 cities and 65 countries across the globe.

    Additionally, in addition to its user-friendly interface and the availability of drivers and cars, Uber’s popularity has grown due to its safety measures, country-specific features, and a wide range of taxi rental alternatives, among other factors.


    ● Ride data may be shared and monitored in real-time
    ● Cost-sharing
    ● More obstacles should be put in place in this area.
    ● Preparing for your travels in advance
    ● Synchronize the times of all of your rides

  2. GettFounded in London in 2011, GetTaxi is an Israeli on-demand mobility business sponsored by Volkswagen that now operates in more than 100 cities around the United States, the United Kingdom, Russia, and Israel. GetTaxi was founded in London in 2011 and has grown fast since then.


    ● The price is calculated automatically using a pricing calculator.
    ● Do you have a pet? Take a vacation!
    ● Increase the number of drop-off locations.
    ● Unloading and loading of materials
    ● Promotional codes.

  3. OlaMore than 100,000 automobiles in the ola network began as an online cab aggregator in Mumbai in 2010 and have since spread to India, Australia, New Zealand, and the United Kingdom, among other countries (169 locations). The smartphone application for this software provides access to a wide range of taxi services.


    ● Highly-secured
    ● Promotional codes.
    ● Payments made via the use of an app
    ● Notifications inside the application
    ● Real-time sharing of information

Features in a Taxi Booking App

When utilizing an online taxi booking app, the ride and drive experiences for customers and drivers should be as pleasant as possible. The elements of the taxi booking app mentioned below are critical to its success. Let us take a quick look and discover about them individually.

  • Payment Systems On the technical side of things, the payment method of the app is the most important feature. There should be no problems with making the payment for the trip in advance. Mobile wallets, mobile banking, and physical cash should all be available to customers.

    Offering a diverse selection of payment options enhances the probability of providing a positive client experience.

  • GeolocationUsers and drivers will be able to see precisely where the request originated by using the geolocation capability. Riders have the option of designating the places where they would want to be picked up and dropped off. On the other side, drivers are alerted to pickup requests through geolocation, which they may accept or reject at their discretion.

    Drivers and passengers can connect with other persons near them by using this function.

  • OnboardingYou must first enable this feature to be able to use the app. Both the passenger and the driver should be able to sign in and register on the app at the click of a button. It is possible to manually enter the information or use a social networking site that offers a one-time password.

    Additionally, a function allows drivers to designate when they are available to work. The riders may sign up for rides, accept or reject them, and then sign off after they have accepted or rejected them all.

  • BookingThis is all it takes to create a taxi booking application. Thanks to this functionality, users should be able to schedule appointments with a single swipe. People will be able to summon a cab by simply hitting a button or slider on your website if you provide one.

    At the same time, provide the driver with the opportunity to respond to a trip request with a single click by equipping them with a comparable feature.

  • Keeping trackAfter getting inside the taxi, the user may use this tool to double-check the route they travel. As long as the cab can be monitored at all times, consumers may be certain that they are traveling in a safe environment.

    If customers see that their taxi is traveling another route, they have the option to terminate the trip or report the incident to the app’s administrator. If you are using a map, you may utilize route tracking to find your way to your destination. This will be beneficial to drivers as well.

  • Scheduled Rides Users will be able to book taxi services in advance using this function. Reservations may be made by mentioning the time and day, and a driver will be assigned based on the information provided. Once a ride has been scheduled, the user will get an email confirming the appointment.
  • Push NotificationsPush notifications are accessible for use in the customer relationship management system. It is possible to communicate with your customers, potential customers, and drivers, all of whom may benefit from your business, via the use of messages and alerts.

    Using this function, the panel administrator may communicate with panel members about discounts, promotions, and other methods to keep their company’s operations running well. Customer retention is increased as a result of increased customer satisfaction.

  • Reserved DestinationsThis feature is popular among the users of the taxi booking app, who are in large numbers. This feature enables users to save sites they frequent and access them later. It might be their place of employment, home, or any other location they frequent.

    If available, this information may also be gleaned from a person’s recent or frequent search history.

  • SecurityWhen booking a cab, everyone considers reliability as an important factor. The driver’s name, phone number, and taxi number are all shown on taxi booking software, allowing you to determine whether or not the driver is the one you were expecting. Because of the services offered by the firms listed above, you won’t have to be concerned about any of the risks mentioned earlier while traveling with a stranger.
  • RatingsBoth drivers and passengers may profit from this function. Please rate your overall satisfaction with your taxi journey in this location, as well as your overall satisfaction with your taxi driver. Customers may also be assigned a grade based on their driving behavior. As a kind of assessment, a numerical rating or the exchange of written or spoken opinions may be employed.

Guide on Taxi App Development

This procedure may be split down into below steps.

  • Make a decisionDecide on the kind of taxi service you want to give to the general public before you get started. In addition to developing an Uber-style software, it may be necessary to develop a transportation service such as a carpooling or rental app, a shuttle app, and so on.
  • Determining the current state of the industryIt is necessary to consider the market and macro environment in which your taxi app will be launched once you have finalized your app idea. China is the world’s most prolific user of mobility solutions, closely followed by the United States and other countries in Europe. As a consequence, these countries are subjected to strong rivalry.
  • Cities with the highest number of ride-sharing usersIt is possible to utilize an efficient business model canvas to build a taxi-hailing app firm (or any other kind of business). That canvas may be used in the future to expand that business even further.
  • Find the right app developersDuring the app development process, this is a vital step to understand. You must be certain that the app developers you choose are competent and reputable before proceeding.

    Recommendation: The hourly rate of specialists is a significant factor in determining the pricing of the software. Technostacks is renowned for having inexpensive development costs and a plentiful supply of highly qualified teams of developers. It is unlikely that you would notice a difference in quality if you work with an experienced offshore team. This is a significant advantage.

  • Address the issues that have arisenDesigning an app for a taxi service is no different from developing an app for any other kind of business. Nevertheless, the following are only a few examples:
    1. Personal safety is a source of concern.
    2. There is a lot of heated competition.
    3. Localization

    When it comes to launching a new taxi app firm, the following procedures must be considered.

    ● Each taxi application is divided into three sections: one for the driver, one for the passenger, and one for the administration panel, which controls all of the company’s actions.

    ● To improve the user experience, several advanced features may be included throughout the app development process or in future app versions. Let us look at them in the next context.

The Development of a Taxi Application: The Stages and Costs

Before we get into the specifics of app development expenses, let’s take a deeper look at how taxi applications are constructed. For the most part, the process is divided into several global phases, which include the following:

  • Preparing for the future (also called discovery or research)
  • Another way of putting it is this: (includes testing and deployment processes)
  • The provision of continual improvements.
  • Promotion and marketing
  • Discovery stage

Inputs from the discovery phase include the following outputs:

  • An application concept in the development stage.
  • A backlog of unfinished items
  • The project’s architectural design plan
  • The creation of a product’s design (UX & UI, clickable prototype)
  • The market and its rivals are scrutinized in detail (optional)

Once these deliverables have been accomplished, it will be possible to make more precise estimates of the cost and timeline for the taxi app.

We anticipate that the basic first operating version of Uber will cost $25 – $49 / hr (Average hourly rate in India which is less than USA and other european countries) per platform (iOS or Android). This version will comprise a passenger app, a driver app, and an admin panel. The development period for a project of this kind typically lasts between five and seven months (The time duration may be less or higher as per the complexity of the app).

According to Clutch’s study, any type of meaningful app might cost anywhere between $200,000 and $500,000 to develop and maintain.

It is also necessary to integrate taxi app marketing campaigns and product promotion activities in a company’s expenditure strategy to achieve its goals.

Advantages to Developing a Taxi Booking Application

  1. Extend the reach of your organizationThe key advantage of investing in taxi booking app development is that it allows taxi firms to reach a wider audience. It’s a simple approach for them to make contact with potential consumers. When booking a taxi, the smartphone generation prefers to utilize an app rather than dial a number. In a poll, it was shown that 65% of consumers utilize online taxi booking software. This is a significant figure that might assist any organization in gaining new clients. As a result, developing a mobile taxi booking application is a smart way to get your firm up and running while also attracting new consumers.
  2. Improve the Public Image of Your OrganizationBuilding a strong brand is important for every company, but it is especially important for young businesses. It is crucial and can either benefit or harm your organization. What exactly is the big deal about taxi-booking applications becoming more popular throughout the world?

    As a consequence of their tremendous brand awareness, people worldwide are aware of the presence of their organization and the services they offer. As a result, they may grow their brand into other cities and countries by developing a cab application.

    For example, Uber’s yearly income will climb to $11.1 billion in 2020 from $0.4 billion in 2014, or a 75% increase. By 2020, Uber drivers will have completed a total of 4.98 billion trips.

  3. Increase the number of existing customers To retain consumers, a company’s brand image must be favorable to the public. Customers’ satisfaction with the quality of the services you give is the second most important factor in establishing client loyalty. Many things are expected and demanded by a company’s customers in today’s market.

    The first stage in developing a long-term relationship with clients is to determine what they need and then supply solutions to meet those needs. If your taxi booking mobile app has good feedback mechanisms, you will identify such desires.

    Customers and drivers may offer their opinions and experiences via several feedback methods. It will let them realize that your organization is concerned about their needs and how they interact with you. With these capabilities, mobile apps for taxi services might potentially enhance the number of new clients that a firm receives from current customers.

  4. Profits Many taxi drivers must pay hefty fees to the aggregator’s software to manage their businesses successfully. Consider creating your taxi app to save money on commissions for your taxi company.

    Because of this, the bottom line of your organization will gain from pursuing this option. If you have an in-house taxi booking app, your profit margins will increase significantly, and your business will develop tremendously.

  5. Transparency in CommunicationsAnother one of the most difficult jobs is to ensure that lines of communication remain open between drivers, customers, and other organizations. Unfortunately, the failure of many offline taxi booking firms to communicate effectively is attributable to a lack of effective communication.

    Adopting online cab booking software may result in a positive customer experience for all parties involved.

On-Demand Taxi App Development Solutions Build and Shaped by Technostacks

Technostacks is a leading web and mobile app development company with proven experience and proficiency in developing on-demand taxi applications. This taxi booking app built by Technostacks team contains diverse modern-day functionalities, including customer app features, driver app features, and the admin console that assists our client to accomplish his business goals. The application is built to operate on both Android and iOS platforms.

Below are the exclusive application modules, features and functionalities, we have enabled for a comprehensive taxi app development project.

  • Passenger Application Module for Booking the TaxiThe significant features of the passenger application module created by Technostacks include registration by email or social media login choices, has a precise booking interface, tracking driver’s location, enabling pricing calculator, have diverse payment alternatives, smart push notifications, and swift alerts.
    The other essential functionalities of the passenger app include messaging, booking history, ratings, and reviews.
  • Driver Application Module for Managing Taxi RidesThe features of the driver application module comprise quick registration, facilitating profile, enabling driver schedule & status, allowing digital bookings, notifications, booking information, and driver related updates.

    The other vital functionalities built by the Technostacks app development team comprise navigation with Google Maps, getting automatic route directions, and also could be voiced. The driver module comprises cost estimation, reporting, messaging, and push notifications.

  • Web-based Admin Module to Handle Ride ActionsThe smart admin module built by Technostacks includes a web application, which is leveraged to save, manage and review all the activities related to the taxi application.

    It offers all the insights into the required processes, displays navigation routes, payroll information, and gathers customer data for promotional campaigns.

Innovative and Dynamic Features for Advanced App Modules

The custom mobile application functionalities include dynamic fare estimation module, seamless monitoring of the ride, numerous payment gateway integrations, service history tracking, active scheduling and rescheduling of a ride, digital booking of rides for others, blending of smart wallets, innovative panic buttons for security reasons, saving of destinations and route optimization.

The bespoke features also include ride cancellation window, heat maps in driver modules, quest earnings and forward dispatch for drivers, splitting of ride charges, customized reports, insights, and data analytics.

Trustworthy On-demand Taxi App development Company

Technostacks is a topmost application development company, and if you are exploring reliable on-demand taxi app development solutions for your next business project, then you can anytime connect with our team and we will give the best possible solution for your cab booking application.

Moving Forward with Taxi Booking Application Development

When arranging your itinerary, keep in mind that you may be able to use a hailing taxi service to go about. As previously said, an increasing number of individuals worldwide are turning to more cost-effective and convenient modes of transportation.

A self-driving automobile will be produced in the future, abolishing the need for a driver and allowing for significant cost savings in operation.

So, we discussed the taxi app development process, stages of taxi app development, costs to create a taxi app and about starting a new taxi app business. To summarize, developing a taxi booking application requires a significant financial and time commitment.

The importance of working with skilled and dependable taxi app developers cannot be overstated. When searching for a software development team, the first thing you should look for is both supportive and technologically forward-thinking.

FAQs on On-Demand Taxi App Development

Q1) How does the taxi app work?

The customers must have to download the app and then register themselves with their desired locations. They can book or schedule a cab from the taxi application. The booking request is redirected to the drivers who are near their locations.

Through a taxi booking app, users can explore the accessibility of cabs from their area. The GPS tracks the user’s existing location. The taxi app offers a distinguishing user interface that handles to streamline user’s further activities.

Riders must pay the entire cost of the trip at the end of the excursion. The price of a taxi ride is determined by the distance traveled and a base charge. The software allows customers to rate and evaluate drivers based on their performance. Even drivers can review their clients’ experiences.

Q2) How do I build a successful taxi application similar to Uber or Ola?

Hire an app development partner and explain your concepts for the on-demand taxi app you want to build. Explain to the technology partner and stakeholders your unique value propositions related to your mobile or web application. Your application for a taxi or cab should offer exclusive value-additions to both passengers and drivers. You can opt for a prototype or an MVP to control business risks and manage your finances in the early stages. Select a precise revenue model and further shape your operations to meet the market demands.

Here are the steps to developing a mobile app like Ola or Uber:

  • Sketch your application concepts.
  • Do your competitive and marketplace analysis.
  • Plan the functionalities and features for your comparable Uber or Ola app
  • Build separate modules for passengers, drivers, and admins.
  • Find an expert technology service provider that will create the apps.
  • Gather feedback from the stakeholders and upgrade your application.

Q3) What are the challenges in building a taxi booking app?

Below are some of the challenges that you may face during the development of cab booking apps.

  1. Government regulations
  2. Competition
  3. Lack of qualified drivers
  4. The price of creating an app
  5. The safety of the riders.
  6. Taxi Allocation/Driver Matching
  7. Automation
  8. Mobile encryption
  9. Integration with telematics to offer accurate pinpointing of the location
  10. User-friendly interfaces

Q4) What are some mobile app ideas for taxi services?

Starting a taxi service company is currently on the must-do list of every business owner and aspiring entrepreneur since it is typically a revenue-generating and dependable method to get started. It takes a lot of money to start, but a taxi company may swiftly pay back the principal and treble your investment in less than one fiscal year.

Here are some great taxi app concepts to put into practice.

  1. Car rental
  2. Carpooling
  3. Ride-Sharing on the Web

Q5) Which are the technology stacks required for taxi app development?

If a new project is directed to back both Android and iOS, the topmost choice is to turn to cross-platform application development. The best technology stacks include Gradle, OkHttp, Volley, Retrofit, Gson and Glide for Android. And Github, UI image extensions, Xcode instruments, Almoner/Moya/Google Services for iOS.

Q6) How much does it cost to build a basic taxi app?

The hourly basis cost of developing a cab app starts from $25 – $49 / hr in India. The total cost may vary agency by agency. As per the features and complexity of the app the hours of the app development and total cost may increase.

Q7) What are the advantages of the cab booking app?

Here are some of the advantages from the best taxi apps.

  1. More chances to succeed.
  2. GPS function.
  3. Improved responsiveness and ease of use.

Q8) What are the major reasons to develop a mobile taxi app?

Here are the significant reasons to create a taxi app.

  1. Tracking your location in real-time.
  2. Developing a brand.
  3. Riders are responsible for gathering data.
  4. Exposure
  5. The efficiency of your fleet’s drivers
  6. More money back in your pocket.
  7. Observations from Others

Q9) What are the competitive business and operational strategies of a winning Uber application?

The competitive strategies and tactics leveraged by the Uber app are reasonable costing for the passengers, innovative application features, and operational leadership. They use these strategies to facilitate them to have a competitive edge in the digital cab business and extensive taxi operations across the globe.